LIBRA Scam Exposed: Insider Trading Unveiled

Unmasking coordinated crypto manipulation

In a shocking revelation shaking the crypto world, the LIBRA token has plummeted by 94% amid allegations of a massive insider trading scheme valued at $4.5 billion. The token, which soared following a high-profile launch on January 14 endorsed by Argentina’s President Javier Milei, quickly turned into a cautionary tale for investors when it was revealed that a few insiders had amassed an overwhelming 82% of the supply.

According to on-chain analysis, the LIBRA crash was precipitated when the project’s team withdrew $87 million from its liquidity pool, while a “snipe” operation saw insiders cash out an additional $107 million. This dramatic exit left retail investors reeling, their holdings reduced to mere fractions of their previous value. The grim scenario is compounded by emerging evidence linking the controversial MELANIA coin team to the LIBRA debacle.

Investigative reports from the popular analytics platform Bubblemaps have traced wallet activity, uncovering that a specific address, P5tb4, had a direct hand in profiting from LIBRA—raking in over $2.4 million before funneling gains to a wallet associated with MELANIA’s creator. This connection, along with similar patterns of profit manipulation in the MELANIA memecoin, has cast a long shadow over both projects. “I was a part of this. I think the team did want to snipe it because how big the snipe was on TRUMP, but we weren’t definitely the biggest siniper,” admitted insider Hayden Davis, though he denied direct involvement in the LIBRA rug pull.

In a subsequent interview with Coffeezilla, Davis offered a controversial take on the unfolding crisis. “People are saying this is a rug pull, but that is not objectively true. There’s still $60 million on the bonding curve of liquidity that’s locked, which suggests a $300 million market cap. It’s not a rug; it’s a plan gone miserably wrong with $100 million sitting in an account that I’m the custodian of,” he explained, leaving investors to wonder about the true nature of the scheme.

The LIBRA token saga has attracted a chorus of voices, including notable figures like Dave Portnoy, who has been linked to similar pump-and-dump tactics in other projects. As accusations fly and the crypto community reels from catastrophic losses, the central question remains: who orchestrated this coordinated manipulation? With several entities, including KIP Protocols, Kelsier Ventures, and insiders like Davis, under scrutiny, the LIBRA scandal continues to unravel.

As investigations deepen, the fallout from this scandal serves as a stark reminder of the risks inherent in the rapidly evolving crypto landscape—a world where fortunes can be made and lost in the blink of an eye.

photo / Blockonome